She assures that deposits will change when banks reduce their liquidity<\/p>\n
The temperature regarding deposit remuneration has been rising throughout the week. On Monday, it was demanded by the Deputy Prime Minister for Economic Affairs, Nadia Calvi\u00f1o, and later emphasized by the number two of the European Central Bank (ECB), Luis de Guindos. The issue came back into the spotlight on Friday, when the president of the National Markets and Competition Commission (CNMC), Cani Fern\u00e1ndez, called for means to investigate these situations. The president of the Spanish Banking Association (AEB), Alejandra Kindel\u00e1n, recalls that she cannot analyze commercial matters of her members and limits herself to pointing out the excess liquidity in the sector as a determining factor. She does so on the eve of a meeting with the Ministry of Economy in which the mortgage assistance plan and the extension of branches to rural Spain will be analyzed. <\/p>\n
The president of the CNMC revealed on Friday that she is “monitoring” the lack of remuneration of deposits by Spanish banks. Do you feel pressure? <\/strong><\/p>\n At the AEB, being an association and subject to Competition Law, we have many limitations in discussing matters related to the commercial practices of entities. We cannot go into specific details about that. <\/p>\n And what justifies, in general terms, that these deposits are not remunerated?<\/strong><\/p>\n Today we have excess liquidity in the system. We came from zero or negative interest rates and from an effort by central banks to provide that liquidity through loans to entities. <\/p>\n Can changes be expected in the short term?<\/strong><\/p>\n Conditions are changing very rapidly because the main objective of central banks is to combat inflation with interest rates. We came from the opposite situation and that happened in a very short time. Spanish banks have already returned 200,000 million. As that liquidity is drained, conditions will change and entities will make their decisions. <\/p>\n Do you not see, then, that there is a competition problem?<\/strong><\/p>\n There is competition; it is not an argument we can use for this. There are large entities competing with regional entities, there are deposits and many liability alternatives being offered. In fact, Spain is today one of the cheapest markets in Europe. For example, in SME credit we are well below the European average, one point difference compared to Germany. <\/p>\n Do you understand the frustration that customers may feel when they see the impact of interest on their mortgage, but not on their checking account balance?<\/strong><\/p>\n It is a very rapid change for everyone. The speed of interest rate increases has never been so drastic in such a short time. And that is disruptive for everyone, but, I insist, in the transfer of interest to credit, Spain has lagged behind. In mortgage credit we have better terms than Germany or Italy. <\/p>\n This week you meet with Deputy Prime Minister Calvi\u00f1o to analyze mortgage assistance. Have they been little used because access is complicated or because they have not been necessary? <\/strong><\/p>\n We always said that the code of good practices was preventive. When it was signed in November there was no delinquency problem and now the economy has better prospects, making it even more preventive. But it is there and will be used. It is good to have it prepared for the needs of debtors and to balance, moreover, that protection with that of the real estate market that provides access to housing in Spain for 75% of families. <\/p>\n The regulator is recommending that banks make provisions in case there are problems with credit in the fall. Will delinquency become more complicated then? <\/strong><\/p>\n The sharp rise in interest rates makes credit more expensive and that affects demand, but that does not mean there is restriction. There is no supply problem. Spanish banking is financially strong, with good solvency and profitability data. <\/p>\n Another issue you will analyze with the Government is the establishment of branches in hundreds of localities that did not have a branch. At what point are you? <\/strong><\/p>\n Important commitments are being fulfilled with a great coordination effort among entities, autonomous communities and the ministry. Rural Spain is a national challenge and we counted 243 municipalities with more than 500 inhabitants without a bank branch. Well, today we have already resolved 140 of those 243 localities. And the next stage is to agree on the installation of white-label ATMs in other municipalities through tenders with town councils on which we are working. We are very proud because these are not easy matters. <\/p>\n